China H-Share Rebound to Unravel on Yuan Risk, Aberdeen Says
- Hang Seng China gauge is up 16 percent from last month's low
- Aberdeen Asset favors Chinese travel stocks, Yeo says
Bundles of Chinese one-hundred yuan banknotes.
Photographer: SeongJoon Cho/BloombergThis article is for subscribers only.
The rally that’s driven Chinese stocks in Hong Kong to the cusp of a bull market will falter as concerns over yuan volatility and rising debt resurface, says Aberdeen Asset Management Plc.
The Hang Seng China Enterprises Index is up 16 percent since slumping to an almost seven-year low in February, outpacing the 9.7 percent rebound by MSCI Inc.’s global gauge. Shares in the city advanced as the yuan stabilized, central banks around the world took steps to boost stimulus and commodity prices rebounded. Aberdeen Asset’s Nicholas Yeo isn’t convinced the calm will last.